A mortgage broker is a professional who connects mortgage consumers and lenders. The main intention is to link banks with potential customers. Banks are still the bigger lender of mortgages in Vaughan without the help of mortgage brokers. However, there is evidence of growth of the mortgage broker industry as people who were turned away by banks seek alternatives. A large number of mortgage brokers in Vaughan specialise in servicing people with bad credit. Our mortgage brokers in the city exclusively provide private lending services for people who couldn’t qualify for traditional loans.
Focus of Mortgage Broker Store and Services Provided by Mortgage Brokers
Mortgage brokers in the city generally provide mortgage set up services. They discuss available options with their clients and request offers before deciding on the best lender for that particular client. Mortgage brokers have a vast knowledge of the industry and are best placed to get clients the best possible rates and terms for loans.
Our mortgage brokerage Mortgage Broker Store’ is licensed to offer loans in Vaughan and other cities in Ontario. Besides the normal services, we specialize in some areas including:
- Bad Credit Mortgages
- Private Lender Mortgages
- Debt Consolidation Loans
- Second Mortgages
- Home Equity Loans
- Stopping Power of Sales and Foreclosures
The staff at our Mortgage Broker Store have more than 5 years experience proving alternative funding solutions. The principal broker is Ron Alphonso who is viewed as an authority on the Canadian real estate sector. Mr. Alphonso is constantly on the news, giving his opinion on current events in the mortgage sector. He has been on the Toronto Star, Global News and Toronto Life as seen on our Media page.
Mortgage Brokers Compared with Mortgage Agents
Both professionals have the authority to sell mortgages in Vaughan but only a mortgage broker can operate a mortgage brokerage. The head of this business is the broker of records or principal broker. It is the principal broker’s duty to ensure that mortgage agents comply with the mortgage act and that all documents are accurate.
Mortgage Brokers Compared to Banks
Banks have been the leading first mortgage lenders throughout Canada’s history. That scenario is changing today, with the rise in demand for mortgage brokers in the city by people who were turned away by banks. Customers prefer mortgage lenders in Vaughan who have more offerings than banks. They have a huge pool of lenders, who they can reach for multiple quotes. Banks may still hold the top position among lenders but mortgage brokers continue to take up a large chunk of the market. Mortgage brokers are responsible for 45% mortgages for new property buyers and 40% of initial mortgages. If the trend continues, mortgage brokers in Vaughan will soon become the leader in the competitive mortgage market.
Mortgage Broker Fees
Fees depend on individual client’s special needs. People who meet bank’s terms for loans do not have to pay any fees upfront. Mortgage broker fees are in this case paid directly by the lender as soon as the mortgage closes. Those who prefer private lenders mortgages must be ready to pay $2000 to process the loan. Legal issues because the mortgage set up fees that can be charged by a mortgage broker, lender or both parties. Divorce, inheritance, and power of sales are some complicated legal matters that spike upfront fees. Such issues increase the risk in loaning a client and lenders must try to mitigate this by leaving consumers to pay home appraisers, real estate lawyers, broker’s staff and other professionals involved in the mortgage set up process.
Licensing For Mortgage Brokers in Vaughan
To operate as a mortgage broker in Vaughan, you must have a license from Financial Services Commission of Ontario. Before getting the document, you must prove that you reside in Ontario and work with a licensed mortgage brokerage. To be eligible for a mortgage broker, one must maintain a mortgage agent license for two years after which they need to sit the Mortgage Broker Education Program. The Financial Services Commission of Ontario approves this and only successful candidates get the coveted license. With the license, you can sell mortgages and eventually open a firm like the Mortgage Brokerage Store.